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2 Industry make-to-order manufacturing Country Germany Project Overview New BOM Structure Just-in-time procurement Improved scheduling ERP project secures jobs at make-to-order manufacturer The whole world is talking about Germany. Many say that Germany does not stand a chance in global competition, considering high wages, many workforce privileges gained over decades and bureaucratic regulations of potential investors. Still, there has never been a greater demand for products Made in Germany. This is documented by a series of world export champion titles and record surplus in trade balance. What is so special about Germany? First and foremost, the quality of products made in Germany, high innovation, an infrastructure that can not be compared to anything else and last but not least, high quality of German employees. A prime example of how the above mentioned excellence can be combined is STOPA, a company located in southern Germany. Using innovation, most modern technologies and an IT based reorganization of internal and external company processes, a once unprofitable business area is now highly profitable again. Processes, once outsourced to the Czech Republic, could be brought back and new jobs were created.

3 Quality Made in Germany STOPA Anlagenbau GmbH & Co. KG has many years of experience regarding all different production steps of mechanical, plant and construction engineering. The company has already constructed more than 1,200 automated warehouse and supply systems and is one of the leading suppliers worldwide. Applying flexible production technologies, STOPA is able to turn out cost effective and customer specific solutions of consistently high quality. New Managing Director initiates reengineering project Many things changed at STOPA. Wolfgang Kienzler, new Managing Director at STOPA, carried out an as-is analysis of internal and external business processes and determined optimization methods. Scheduling at STOPA, for example, did not take place via the ERP system, requirements determination took place manually and the multi-level BOM for a sales order was exploded manually just as the list of work order suggestions. Consequently, procurement processes could only be activated if the respective work order was created in the ERP system. Procurement is now processed where the requirement occurs. In terms of production, lead times could be decreased by 30%. We now have less effort and in 95% of cases can stick to deadlines. Wolfgang Kienzler Managing Director Stopa We are a make-to-order producer, remembers Wolfgang Kienzler, meaning that we have small batch sizes. Two MRP controllers were picking, when a sales order came in, one of them went into the warehouse and looked into the respective box, true to the motto: I need 5 pieces and there are still 20 in the box, everything ok. The possibilities, provided by an integrated ERP system such as abas Business Software, were simply not being used. Do you know, how much paper we printed out just for inventory sheets? We have 130,000 product master files, 20 products per sheet - you see what I mean. Thanks to reengineering, only those products with a stock level will be printed on inventory sheets. This can be done in two hours for a maximum of 12,000 products. Competent partners A reengineering project has top priority. To ensure acceptance of the project among employees, extensive measures were arranged. Since STOPA had been working with abas Business Software for several years, employees were already familiar with the software. At first, employees in sales were trained in the newly defined entry mode of main components in the sales order. Many rigid structures had to be broken up. Intensive training was necessary for the newly generated sales order BOM, since this standard functionality had not been used at STOPA until then. In one of the next steps a new database was implemented, which also supports 3D outputs of design engineering drawings.

4 We have also optimized our warehouse stock, thanks to data transparency in abas ERP, we no longer need a safety stock, which increases our liquidity. Using abas Business Software, we were able to make an unprofitable business profitable again. abas ERP tells me exactly where I stand in which area. Added value has increased considerably. Wolfgang Director Kienzler Stopa Managing Effective improvements After successful reorganization the expected improvements started to take effect at the mechanical engineering company. Today, material is automatically posted when completion confirmations are created for individual operations. Through available detailed information in machine loading and scheduling, cumulative representations are possible. This leads to considerable time-savings when setting up tools. A detailed view of master files and business processes allows more detailed planning than before. Together with the new BOM structure, this enables up to 30% shorter lead times and increased transparency in production processes. Today, STOPA can rely 100% on scheduled dates. We have also optimized our warehouse stock, says Kienzler and adds, thanks to data transparency we no longer need a safety stock, which in turn increases our liquidity. The same positive effects can be seen in procurement. Prior abas ERP some parts were at the plant two, or even three weeks early due to a lack of transparency, procurement now takes place just in time. abas infosystems ensure right decisions We had outsourced some production areas to Slovakia and the Czech Republic. Due to reorganization, we are now able to produce those parts at a lower price in Germany and consequently brought them back. This also has a positive effect on how employees accept the business software. Data from the system can be accessed by all. A process is entered once and everyone can benefit from it. We used to have Excel spreadsheets, error prone and time-consuming double entries of data and a safety stock. This is all history now. When comparing today s production locations with those from 3 years ago, one could think that STOPA has less to do. This impression is wrong. Exactly the opposite is happening today. Work processes have been organized - material is no longer lying around in aisles and corners. Previously, master files in abas ERP represented a world that did not exist. Transaction data did not correspond to the workflow. Despite several worriers in the company, Kienzler established the reorganization consequently and was promoted from Head of IT to Managing Director in In his new position abas ERP provides him with all relevant information regarding business processes and is his basis for right decisions. Wolfgang Kienzler Managing Director Stopa

5 Increased added value and secure jobs Project support: ABAS Projektierung GmbH Kienzler summarizes the reorganization positively, Lets look at our business fields machine and steel construction. We have very high material costs with small margins. With our old organization structure we could no longer operate these fields of business. Using abas Business Software, we were able to make an unprofitable business profitable again, he proudly adds. abas ERP tells me exactly where I stand in which area. Added value has increased considerably. We had outsourced some production areas to Slovakia and the Czech Republic. Due to reorganization, we are now able to produce those parts at a lower price in Germany and consequently brought them back. This also has a positive effect on how employees accept the business software. Data from the system can be accessed by all. A process is entered once and everyone can benefit from it. We used to have Excel spreadsheets, error prone and time-consuming double entries of data and a safety stock. This is all history now. Procurement is now processed where the requirement occurs. In terms of production, lead times could be decreased by 30%. In the past, adherence to delivery dates in the machine and steel construction field was hard to achieve. We now have less effort and in 95% of cases can stick to deadlines. In the past, we had 5 employees in purchasing, today we have only two. The order center works 20-25% more efficiently than before the reorganization. Thanks to this reorganization, many unnecessary tasks ceased to exist. We can now invest these saved resources in services and increased customer satisfaction. Product profile - abas Business Software In the past, we had 5 employees in purchasing, today we have only two. The order center works 20-25% more efficiently than before the reorganization. Thanks to this reorganization, many unnecessary tasks ceased to exist. We can now invest these saved resources in services and increased customer satisfaction. Wolfgang Kienzler Managing Director Stopa The brand name abas Business Software includes the products abas ERP for production, abas Distribution for distribution, wholesale, and service companies, and the ebusiness solution abas eb. abas ERP is an ERP application designed specifically for manufacturers in the Assemble-to-Order, Make-to- Order and Engineer-to-Order environment. abas Business Software is priced to fit most budgets while delivering full ERP functionality. It is flexible, adaptable, internationally applicable and a save investment for the future. The clear structure and well thought-out implementation strategy of the system enable a short implementation period as well as trouble-free integration into the company structure. New functions and technologies are constantly added to the standard software with each new upgrade. As a result, abas users are always using the most up-to-date product. abas Business Software is currently offered in 28 languages and can be run using Linux, Unix and Windows. ABAS has been a supporter of the open source operating system Linux since Approximately 80% of over 2,200 abas installations are based in Linux. abas Business Software - range of services: Sales/sales order processing/ shipping, purchasing/purchase order processing, warehouse management, scheduling, logistics, materials management/mrp, production/ppc, financial accounting, fixed asset accounting, cost accounting, controlling, ebusiness, portal, etc.

6 Company profile ABAS Software AG is a leading provider of cost-effective ERP solutions for midsize manufacturers and distributors. More than 2,200 customers have chosen ABAS as their IT specialist and work successfully with the internationally applicable abas Business Software. ABAS, established in 1980 and once characterized by students, has now become a global network of companies. ABAS Software AG in Karlsruhe employs more than 120 people, and together with over 50 abas partners ABAS employs approx. 600 employees worldwide. The abas software partners provide a wide range of services including implementation, customization, hardware and network support. ABAS also provides on-site support and ensures short reaction times and high service quality. International partners in Germany, Austria, Switzerland, Hungary, Romania, Bulgaria, Turkey, Czech Republic, Slovak Republic, Poland, Ukraine, Russia, the Netherlands, France, Italy, Spain, Iran, Indonesia, India, Sri Lanka, Malaysia, Singapore, Vietnam, Thailand, China, Hong Kong, Australia, Mexico, and the USA represent the ABAS Software AG throughout the world. The partner network is continuously being expanded. For Video Material, please visit: STOPA Anlagenbau GmbH & Co. KG The company STOPA Anlagenbau GmbH & Co. KG is an independent medium-sized plant engineering and construction enterprise with its headquarters in Achern, south of Karlsruhe, Germany. Established in 1963, the core business today is the development and manufacture of automated storage and supply systems, through which STOPA has become one of the leading vendors in Europe. The central business area of storage systems is supplemented by the branches machine construction & steel construction as well as the conceptual design and erection of car parks. On a production floor space of approximately 13,000 square metres the team of over 200 primarily manufactures storage systems for all kinds of storable goods with the focus on sheet metal and long materials. References include over 1500 completed projects worldwide both by way of integrated automation modules for processing machinery and also by way of standalone equipment for various storage tasks. This range of production activities is supplemented by retrofit services- and after sales services, providing to our national and international customers the highest degree regarding availability and long-term return on investment. ABAS Software AG - As of November 2009 Content is subject to change - Prod.no.: abas user report STOPA Your abas Software Partner: Software Provider: ABAS Software AG Südendstraße Karlsruhe GERMANY Tel / Fax /

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